3 P’s Essential to Maximize Small Business Profits

3 P’s Essential to Maximize Small Business Profits

Most small business owners want two things from their business- a reasonable Profit for all their hard work, and the freedom to enjoy their Personal life (both in the business and outside it).

However, they often neglect the 3 other P’s that will create the Profit and Personal life they want.

To explain this concept, I created a formula:

Plan + Process + People = Profits —> your Personal life

You need to have all 3 P’s in this order:

  1. Planning— What are the Right Things? [the What]
  2. Process— What does Done Right look like? [the How]
  3. People — Do we have the Right People? [the Who]

Without Planning, people don’t know how what they do impacts your goals, so they are busy but not focused.

Without effective Process, you will have wasted effort, headaches and won’t deliver on your promises to customers.

Without the right People, you will be busy dealing with fires and drama, and trapped in daily effort to “manage” your people and customers.

—> You feel overworked, overwhelmed by your wish list of business improvement projects, and you feel guilty working long days instead of spending time with your friends and family.

Once you put the 3 P’s in place at your organization, you can transform into an organization with:

A Plan: when your staff know the “plan” and understand how they impact organizational goals, they work together as a purpose-driven team to improve and grow the business by delighting your customers.

Clear Process: when activities are standardized, clear roles and responsibilities are outlined, and key results are tracked to make informed decisions, this provides “autopilot” systems to run smoothly and scale easily.

Right People: when you have managers who build and coach a team of A-Players, you trust them to run the business and make decisions as you would.

This leads to your ultimate goal as a business owner:

  • The level of Profit (financial security) you desire, and
  • The Personal work-life balance you want … the freedom to do what you want, when you want to do it.

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Discover Which Plan, People and Process elements are Roadblocks in Your Small Business

Take our 3 minute quiz to find out how your firm compares to high-growth and high-profit firms.

Blog Author Diana Southall

Article by Diana Southall

About the author: Diana Southall is the creator of the People Plan. She helps companies that are missing out on opportunities because the owner is personally involved in every sale or client.

5 Week Plan for the Best Year

5 Week Plan for the Best Year

As another calendar year winds down, many organizations are focused on a strong finish to this year and planning for the next one.
Typically this centers on the financial side of the business.

As you do your year-end de-briefing, why don’t you also ask yourself “What did I enjoy this year? Did I make the impact I expected?”

Certainly we are in business for financial rewards, but I suspect you also want the rewards of feeling accomplished, fun, freedom and flexibility.

Even the business owner deserves to have a role they love, a sense of accomplishment and “work life” balance (not a J.O.B.)

So as you plan for your business next year, why not re-imagine your role?
For myself, I outlined a weekly action plan to create by “best year ever.”

Here is the outline, and the next 5 weeks– if you would like to join me and re-define your role next year.

My 30 day plan for my (your) best year ever:

  • Week 1- identify your *“ikigai” – the genius that you bring to the world and that you love to do [see ikigai image above]
  • Week 2 –write up your current “job description” and then create your ideal job profile
  • Week 3—highlight your delegation wish list — and who you can give to now or train for the future
  • Week 4- meet with those “delegatees” and share your ideas for these new duties, if they agree and commit
  • Week 5 – develop quarterly training action plans for the people with delegated items (to prevent your excuses above to keep these activities)
  • Week 6 and beyond— focus and maximize your time- schedule your important work first, build the habits and track your progress, implement weekly huddles and quarterly action plan meetings

 

Resources- Planning (Strategy, Budget, Sales)

Business Planning:

There are several essential planning documents to systematically craft, communicate and implement a roadmap and key results:

  1. One-page strategic plan (5 year)
  2. Annual budget and with annual goals and 3-4 key projects (rocks)
  3. Monthly company dashboard
  4. Sales plan and process

Outside Resources

These links are for resources from several groups that work with high growth organizations.

Documents & Instructions

Articles

How to Set An Annual Budget for Your Business, Inc Magazine

How to Setup a Budget for Your Business, SCORE

Five Steps to Create your One-Page Strategic Plan, Entrepreneur Magazine

To your People success,

-Diana Southall, People Coach and creator of the People Plan™

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Once you have an organization strategy and plan, you can get everyone on the team working to achieve it.
If you are ready to create your own People Plan, learn more about our Toolkit resources.